Farage urges BoE to halt bond sales after meeting with Bailey; Reform UK pushes for crypto rethink

Nigel Farage and Reform UK deputy leader Richard Tice pressed Bank of England Governor Andrew Bailey to halt the central bank’s bond-selling programme in their first formal meeting, arguing that quantitative tightening is saddling taxpayers with multibillion-pound losses and pushing up the cost of government debt. The encounter took place at the Bank of England’s Threadneedle Street headquarters, with Reform officials telling reporters that Parliament should debate the policy more openly, even as the Bank remains independent on monetary policy.

The Bank began quantitative tightening in 2022, unwinding the emergency support it deployed after the 2008 financial crisis. The opposite process—quantitative easing—saw the Bank electronically create billions of pounds to buy UK government bonds to prop up the economy and keep market rates low. Under current QT, the Bank is selling those bonds at a loss, with the Treasury bearing the losses under a 2009 arrangement. The Bank also disclosed last week that it would slow the rate of bond sales, reducing the run-rate from about £100 billion a year to £70 billion.

Tice told reporters after the meeting that MPs should play a more active role in scrutinising the Bank’s policy, arguing that fear of touching the Bank’s independence had left politicians reluctant to debate the issue. He warned that the “huge multibillion cost” could influence taxation and, in turn, affect the Chancellor’s upcoming Budget in November. He also criticised the Bank’s policy of paying interest on reserves held by commercial banks as part of QE, tying it to the broader costs of the programme.

On crypto regulation, Farage said he pressed Bailey to reassess the Bank’s stance toward digital currencies, accusing the central bank of holding back innovation. Reform has pledged to position the UK as a premier hub for cryptocurrency and has proposed a two-year pilot scheme in which designated financial institutions would be exempt from some crypto rules. The party also seeks to slash capital gains tax on crypto asset sales and allow tax payments in Bitcoin and other approved cryptocurrencies. Farage has previously described central-bank officials as “dinosaur bureaucrats” over plans to cap ownership of stablecoins in the UK payments system, though he said Bailey appeared to keep an open mind on crypto regulation during the meeting.

The Bank declined to comment on the details of the discussions but said Bailey had a productive meeting with Farage and Tice and that the institution continues to engage with political representatives as part of its broader policy outreach.